Pink's Bottom Line on Media, Money and Sports

Online gambling ads, PayPal earnings and an underestimated NBA team

In today’s newsletter, I discuss online gambling ads, PayPal earnings and an underestimated NBA team.

MEDIA: Online Gambling Ads

As online gambling grows and becomes legal in many states across the country, local television advertising seems to be a beneficiary of its emergence.

According to a report from Nielsen, 80% of online gambling ad dollars go to local television — that equates to an estimated $154 million in the first quarter alone.

Pink's Bottom Line

Advertising dollars in general have shifted more and more to digital — and away from traditional media — in the past few years.

That makes the dominance of local television when it comes to online gambling ads even more notable.

It also indicates that these online gambling companies are likely targeting an older audience, as traditional linear media skews older than most digital media.

MONEY: PayPal Earnings

PayPal, a large digital payments company, reported sharply higher first quarter earnings today. (Click here to read PayPal’s earnings news release.)

Revenues at the company jumped 31% to $6 billion in the first quarter compared to the same quarter a year ago, and PayPal also raised its guidance for the rest of the fiscal year.

Pink's Bottom Line

PayPal appears to have benefited from the rapid growth of e-commerce and an overall shift to a more digital economy during the pandemic.

E-commerce shows no real signs of slowing down so that means that payment companies at the heart of the digital economy — like PayPal — should continue to show growth as a result.

SPORTS: Underestimated NBA Team

The NBA’s Denver Nuggets, currently fourth in the Western Conference standings, just might be one of the most underestimated teams in the league.

Though Denver lost star guard Jamal Murray to a season-ending injury last month, the Nuggets have posted a 9-2 record in his absence.

The team also has presumptive league MVP Nikola Jokic playing at perhaps his highest level of the year plus Denver is getting a strong contribution from budding superstar Michael Porter, Jr.

Pink's Bottom Line

According to FanDuel Sportsbook, the Nuggets are the eighth most likely team to win the NBA title this year at +3600 — the Phoenix Suns, the seventh most likely to win it all, have far better odds +1600 for example.

Still, I look for the Nuggets to make some noise in the playoffs again this year — remember, they made it to the Western Conference finals in 2020 and they just might get further this year despite what the sportsbooks project and despite the loss of one of their star players.

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Jeremy Pink is currently COO of Geniecast, a leading virtual content and experience company. He is the former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore.

The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.

(Newsletter Editor: Karina Pink)